Wesdome Gold Mines Ltd. - Wesdome reports strong second quarter production and updates development work
Tue Jul 24, 3:22 PM
ca.news.finance.yahoo.com
TORONTO, July 24 /CNW/ - Wesdome Gold Mines Ltd. is pleased to provide an update on second quarter production and development activities on its 100% owned Eagle River mine and Kiena mine complex located in Wawa, Ontario and Val d'Or, Quebec, respectively. Financial results for the second quarter ended June 30, 2007, will be released on August 14, 2007.
Production totalled 25,555 ounces of gold in the second quarter and 42,379 ounces of gold for the first half of 2007. Highlights of production included a 126% increase in grade at Eagle River and a 22% increase in mill throughput at Kiena compared to the first quarter, 2007. We are on track to comfortably exceed our 2007 forecast of 70,000 ounces.
Production Highlights
Three months Six months
ending ending
June 30, 2007 June 30, 2007
------------- -------------
Eagle River Mine
Tonnes milled 23,200 53,900
Recovered grade (g/t) 19.2 13.1
Ounces produced 14,323 22,707
Kiena Mine Complex
Tonnes milled 87,000 158,400
Recovered grade (g/t) 4.0 3.9
Ounces produced 11,232 19,672
Total production (oz) 25,555 42,379
Eagle River Mine
At the Eagle River mine, mill throughput declined due to an eight day shutdown due to a transformer failure in April. Despite this setback, very high grades resulted in a strong performance. We are well on our way to exceeding our annual forecast of 30,000 ounces.
In the third quarter, half of the millfeed will be sourced from underground and half will come from the Mishi open pit. A surface stockpile of 50,000 tonnes, grading 2.9 gAu/tonne from the open pit, is at the mill.
Development of the high grade 811 zone is in progress. Drifting on the 275 metre level returned a 47.0 metre length of ore averaging 29.44 gAu/tonne uncut and 16.48 gAu/tonne cut to 60 gAu/tonne over an average width of 1.53 metres. Drifting on the 355 metre level returned an 80.0 metre length of ore averaging 77.07 gAu/tonne uncut and 25.81 gAu/tonne cut to 60 gAu/tonne over an average width of 2.08 metres. This drift remains in mineralization and is advancing.
The ramp has advanced to the 415 metre level establishing drill stations to test the 811 zone to depths of at least 650 metres. The 811 zone remains open below 415 metres and all current reserves are above this level. Drilling has commenced.
Kiena Mine Complex
Mill throughput averaged 960 tonnes per day compared to 790 tonnes per day in the first quarter. Steady production at 1,000 tonnes per day has been attained with improving costs which averaged $72 per tonne in June.
In July, planned maintenance/construction on the grizzly and VC zone backfill cycles will limit production, which will resume at 4,000 ounces per month in August. Wesdome continues to invest in development, particularly in the above average grade VC zone, which will comprise the bulk of production in 2008.
Drilling in the first half, 2007, focused on definition work. During the second half, exploration drilling will prevail. Drilling will test the southeast extension of the Martin zone and is scheduled to commence testing the depth potential of the S-50 zone in the fourth quarter. The exploration drift to the Shawkey 22 zone is advancing and is expected to arrive near year end.
Analytical Controls
Assaying at Eagle River is conducted by fire assay on 25 gram aliquots. Duplicates and blanks are inserted in every batch to monitor precision and accuracy. A system of external checks is being established. Assaying at Kiena is also by fire assay on 30 gram charges. Internal duplicates, standards and blanks are complemented by blind standards and blanks inserted at a frequency of one in twenty samples. Reconciliation of milling results to underground sampling results provides historical confidence in sampling and assaying procedures employed. The qualified person responsible for compiling and verifying technical and analytical data as per 43-101 is George Mannard, P.Geo.
Wesdome Gold Mines Ltd. is an established Canadian gold producer with mining operations and development projects in Wawa, Ontario and Val d'Or, Quebec. The Company has 96.5 million shares issued and trades on the TSX Exchanges under the symbol "WDO".
This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances, management's estimates or opinions should change, except as required by securities legislation. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.
Contacts
Donovan Pollitt
VP Corporate Development
Wesdome Gold Mines Ltd.
8 King St. East
Suite 1305
Toronto
ON
M5C-1B5
Toll Free: 1-866-4-WDO-TSX
Phone: (416) 360-3743
Fax: (416) 360-7620
Email: invest@wesdome.com
Website: www.wesdome.com |
